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	<title>The Young Executive &#187; Marketing</title>
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	<description>notes from successful young people everywhere</description>
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		<title>Understanding Box Office Success</title>
		<link>http://www.theyoungexecutive.com/2010/01/understanding-box-office-success/</link>
		<comments>http://www.theyoungexecutive.com/2010/01/understanding-box-office-success/#comments</comments>
		<pubDate>Thu, 21 Jan 2010 08:55:22 +0000</pubDate>
		<dc:creator>younghollywood</dc:creator>
				<category><![CDATA[Hollywood]]></category>
		<category><![CDATA[Marketing]]></category>
		<category><![CDATA[Studios]]></category>
		<category><![CDATA[box office gross]]></category>

		<guid isPermaLink="false">http://www.theyoungexecutive.com/?p=90</guid>
		<description><![CDATA[It’s important to understand box office grosses. What does a movie that cost $30 million in production need to make overall to turn a profit? Well something important to remember is that a studio doesn’t just calculate the production budget, but as well as what the film costs in marketing and distribution.This can easily make [...]]]></description>
			<content:encoded><![CDATA[<p>It’s important to understand box office grosses. What does a movie that cost $30 million in production need to make overall to turn a profit? Well something important to remember is that a studio doesn’t just calculate the production budget, but as well as what the film costs in marketing and distribution.This can easily make that $30 million budget into $60 million.</p>
<p>Let us take for example the <strong>Universal</strong> film <em>Public Enemies</em>. It had a physical production budget of at least $110 million. The marketing of the film cost roughly another $75 million. Finally to distribute it worldwide cost another $70 million. At the end of the day this film costs $255 million. So in order to turn a profit the film would of course have to surpass this number to be considered a box office success. According to <a href="http://www.boxofficemojo.com/movies/?id=publicenemies.htm">Box Office Mojo</a>, <em>Public Enemies</em> made $214 million worldwide. It’s safe to conclude this was a loss for <strong>Universal</strong>.</p>
<p>Now a common misconception of film budgets are that people only look at physical production costs. It’s a little known fact just how much costs goes into marketing and distribution. Therefore if you would like to roughly assess what a film is going to cost just double the number of what you believe it would cost in physical production alone.</p>
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